Audit Reports

Overview

The Report deals with the results of audit of Government Companies and Statutory Corporation of Chhattisgarh for the year ended 31 March 2016.

Chapter-I of the Report gives functioning of State Public Sector Undertakings of Government of Chhattisgarh. As on 31 March 2016, the total investment in 22 PSUs was ` 27881.71 crore, of which 90.23 per cent was in Power Sector. 12 PSUs earned aggregate profit of ` 488.93 crore and eight PSUs incurred aggregate loss of ` 1596.98 crore as per their latest audited accounts. One PSU earned no profit no loss. The remaining one PSU did not finalise their first accounts. Out of 23 accounts finalised by working PSUs during October 2015 to September 2016 the Statutory Auditors had given unqualified certificates for 17 accounts and qualified certificates for six accounts. This Report contains nine paragraphs, one Audit and one Performance Audit involving financial effect of ` 521.68 crore.

Chapter –II includes findings of Performance Audit on ‘Implementation of Restructured Accelerated Power Development and Reforms Programme (R-APDRP) in Chhattisgarh’ and Audit of ‘Mining and Marketing of Minerals by Chhattisgarh Mineral Development Corporation Limited’.

Performance Audit on implementation of R-APDRP revealed that despite an expenditure of ` 540 crore (as on March 2016), only four out of 20 towns could achieve the target of 15 per cent Aggregate and Technical Commercial (AT&C) Losses during 2015-16. In the five Project towns instead of decrease, AT&C losses increased in 2015-16. A beneficiary survey by audit revealed that in 10 towns, 61 per cent of the 500 consumers surveyed were not aware about the benefits of Customer Care Services. Further, 16 per cent (82 consumers out of 500) of surveyed consumers complained that their meter reading was not being taken regularly and received bills for energy charges on average consumption basis. The survey also revealed that nine per cent of consumers (47 out of 500) were not receiving energy bills in time. The Chhattisgarh State Power Distribution Company Limited (Company) declared 16 and 12 towns as go-live (completed) without functioning of Meter Data Acquisition System and Customer Care Service module respectively. Out of 10361 modems installed in Distribution Transformers and feeders for obtaining energy data, only 3240 modems were communicating the data as on 31 March 2016. This resulted in poor communication of energy data compelling the Company to fill gaps through manual entries thereby defeating the Scheme objective of eliminating human intervention. As of March 2016, there was no physical progress in the Supervisory Control and Data Acquisition System (SCADA) works in two selected Project towns due to inaction on the part of the implementing agency and not providing of enabling infrastructure by the Company. Further, the Company deposited Scheme funds of ` 317 crore in its overdraft account instead of Scheme account.

Audit of ‘Mining and Marketing of Mineral by Chhattisgarh Mineral Development Corporation Limited’ revealed that The Chhattisgarh Mineral Development Corporation Limited (Company) failed to develop the Coal blocks and commence mining after elapse of nearly two years to over seven years. The expenditure of ` 339crore incurred by the Company for pre-mining works became infructuous on cancellation of Coal blocks by the Hon'ble Supreme Court. The Company unduly extended the period for completion of pre-mining activities of Kesra II, III, IV, Barima VI and Nagadand Bauxite mines. As a result, the Company suffered loss of revenue ` 9.30 crore during January 2009 to December 2013. The Company failed to comply with the conditions for renewal of license for trading of Columbite which resulted in loss of revenue of ` 3.35 crore. The Company failed to ensure compliance to the environmental regulations in respect of ambient air quality, noise pollution and tree plantation in Daldali Bauxite mine.

Chapter-III includes nine Paragraphs relating to Transaction Audit Observations. The irregularities pointed out are broadly resulted in loss of ` 127.98 crore in six cases due to non-compliance with rules, directives, procedures, terms and conditions of contracts and loss of ` 3.16 crore was incurred in two cases due to defective/ deficient planning.

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• Report No 1 of 2017 Chhattisgarh Public Sector Undertakings

• Index Report No 1 of 2017 Government of Chhattisgarh
• Preface Report No 1 of 2017 Government of Chhattisgarh
• overview Report No 1 of 2017 Government of Chhattisgarh
• Chapter 1 Functioning of State PSUs Report No 1 of 2017
• Chapter 2 Performance Audit of Government Companies Report No 1 of 2017
• Chapter 3 Transaction Audit Observations Report No 1 of 2017
• Annexures Report No 1 of 2017 PSUs Chhattisgarh